Older people are getting £2797 less from the Department for Work and Pensions thanks to a two-tier system. The DWP has two rates for state pensioners to take advantage of at state pension age, under the Labour Party government.

As it stands, men born before April 6, 1951, and women born before April 6, 1953, receive the basic State Pension, which is currently worth £176.45 per week. Men and women born after these dates are eligible for the new State Pension which is paid at a rate of £230.25 per week.

That is £53.80 more per week than the basic State Pension and means older pensioners can only get a maximum of £9,175.40 in pension payments.

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Pensioners on the new scheme will get up to £11,973 per year.

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